Chesapeake Seeks to Sell South Texas Shale Assets for $2 Billion

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Chesapeake Seeks to Sell South Texas Shale Assets for $2 Billion
Credit: © Reuters.

(Bloomberg) -- Chesapeake Energy Corp (NYSE: CHK )., the once mighty shale explorer that exited bankruptcy earlier this year, is seeking to sell oil-producing assets in South Texas for as much as $2 billion, according people familiar with the plan.

The Oklahoma City-based producer is working with a pair of advisers to offer the assets in the Eagle Ford shale, said the people, asking not to be named because the discussions are private.

Once known for its aggressive growth through acquisitions during the shale boom, Chesapeake joined other producers in filing for bankruptcy protection last year after the pandemic devastated demand for energy. When the company exited restructuring in February, CEO Doug Lawler declared it was “a new era for shale.”

The potential sale comes at a time when the company has announced Lawler is departing on April 30, after eight years with the company.

Reuters reported the plan for the Eagle Ford shale assets earlier. Chesapeake declined to comment.

In 2018, Lawler oversaw a deal to buy 420,000 acres of leases from Houston-based Wildhorse Resources in the eastern end of the Eagle Ford, known as the Brazos Valley.

The shale driller also owns and operates 220,000 acres of oil and natural gas leases in the western end of the Eagle Ford.

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© Bloomberg. A Chesapeake Energy Corp. natural gas rig near Kennendale, Texas in 2009.

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